Silver Soars 60% in Less Than a Month, Reaches Record Levels

Silver prices surged sharply in local and global markets on Monday, surpassing all-time highs, driven by growing concerns about the U.S. economy, according to a report from the Safe Haven Center.

The report highlighted that repeated trade threats from the U.S. administration, rising risks of a government shutdown, and increasing questions about the independence of the Federal Reserve have reignited fears of a deterioration in the U.S. economic and institutional framework. This has prompted investors to flock to safe-haven assets, particularly precious metals.

Local and Global Prices

Locally, the price of 999-grade silver rose from EGP 173 to EGP 189 per gram, 925-grade silver increased to EGP 175, 800-grade reached around EGP 151, and the silver pound stood at about EGP 1,400.

Globally, the ounce climbed from $103 to $115, after earlier hitting a record near $110.90.

The report noted that since the beginning of the year, silver has gained roughly 60% on global exchanges—its best performance since 1979—while its local market gains reached around 51%.

Dual Support: Safe Haven and Industrial Demand

Risk aversion remains a key factor supporting prices, alongside ongoing pressures on the U.S. dollar amid expectations of interest rate cuts and political instability in Washington, which make dollar-denominated metals more attractive to foreign investors.

In addition to its safe-haven role, silver benefits from strong industrial demand, especially with the accelerating energy transition. Rising demand from solar energy, electric vehicles, and grid infrastructure sectors tightens the physical market supply, while mining output growth remains limited.

Monetary Policy and Supply

Expectations regarding U.S. monetary policy remain central. Markets anticipate that the Federal Reserve will maintain a cautious approach in the near term, keeping the door open for future monetary easing if the economic slowdown intensifies. This supports non-yielding assets such as silver.

The decline in the U.S. dollar index during January, along with bond market volatility, has also shifted capital from fixed-income instruments to tangible assets, including gold and silver.

Future Outlook

The report noted that central banks typically avoid investing in silver due to its close link to industrial use. However, institutions and individual investors see it as an attractive alternative amid declining confidence in the dollar.

With gold prices rising sharply, silver has emerged as a lower-cost option to benefit from the precious metals boom, with a potential target of $300 per ounce in 2026 if supporting factors persist.

The report emphasized that the global supply gap, continued strong demand from solar energy, electric vehicles, and artificial intelligence sectors, along with geopolitical tensions and rising trade conflicts, all contribute to maintaining silver’s appeal—not only as an industrial metal but also as an investment asset capable of hedging against slower economic growth and global interest rate volatility.